Any liquidity provider can expect to gain two types of rewards: LP fees (consisting of the respective pair's assets) and $LIX farming rewards.
As mentioned in the previous section, LPs gain LP fees paid by the Uniswap V3 users who perform trades with the vault's liquidity. By concentrating liquidity in a tight range, these LP fees can be many multiples higher than they would be with that same amount of capital in a (0, ∞) range (e.g. Uniswap V2). The only trade-off is that for a given price change, the IL is greater for a concentrated liquidity position than it is for liquidity in a (0, ∞) range (assuming both started off concentrated around the same price). LP fees are auto-compounded and the LV tokens reflect this in the underlying assets similar to how interest bearing tokens accrue value.